GUIDELINES
FOR
DIRECT CHARGING SPONSORED PROJECTS
UNIVERSITY OF CALIFORNIA, IRVINE
Expense
Category
Administrative and
Clerical Salaries and
Wages
Description of Typical Expenses
Treatment*
The following list (which is not all inclusive) represents the most common, routine
administrative and clerical activities that are considered F&A and should not be charged to
sponsored projects since they cannot be identified with a specific project relatively easily:
Not Chargeable
F&A
general departmental administration
personnel functions
accounting and budgeting functions
travel planning
processing and tracking purchase orders
purchasing
payroll/human resources
bookkeeping
financial monitoring
reconciling accounts/ledgers
A-21
Reference
newsletter/brochure preparation
maintaining general departmental databases
correspondence/report preparation
space management
equipment inventory
contracts and grants administration
proposal budget preparation
regulatory committee requirements
(human subject oversight, IRB
preparation, etc.)
Administrative support that is significantly greater than routine level of support provided to
every project due to the nature of the project being conducted can be charged directly to
sponsored projects if the project meets the federal criteria of a Major Project.
Direct
Examples of activities in support of major projects:
 competitive and complex procurement (e.g., equipment, services, fabrication)
 conducting a telephone survey
 coordinating and managing a high number of consultant contracts/subcontracts
 coordinating extensive travel and meeting arrangements
 extensive data entry
 extensive research accumulation
 extensive interviewing (e.g., human subjects, data collection)
 managing projects with multiple sites
 planning and organizing large conferences
 preparing manuscripts/publications beyond the routine
 extensive administrative activities in support of related projects
Page 1 of 17
February 1998
F.6.b
GUIDELINES
FOR
DIRECT CHARGING SPONSORED PROJECTS
UNIVERSITY OF CALIFORNIA, IRVINE
Expense
Category
Description of Typical Expenses
Treatment*
A-21
Reference
The following criteria must be met before administrative and/or clerical
salaries are charged to a federal project:
(1) It is necessary to incur the cost to perform the project’s scope of work;
and
(2) The cost must be identifiable to the project with a high degree of
accuracy; and
(3) The proposal resulting in the award describes, in the budget
justification, the project activities that satisfy the federal definition of
Major Project and the budget explicitly includes administrative or
clerical salaries (i.e., the individuals and/or positions providing
administrative or clerical support must be specifically identified with the
project activities); or
(4) The sponsor’s prior approval of rebudgeting is obtained, provided that
the prior approval request submitted to, and approved by, the sponsor
explicitly includes administrative and clerical salaries (i.e., the
individuals and/or positions providing administrative or clerical support
must be specifically identified with the project activities); or
(5) The terms and conditions of the award transfers certain rebudgeting
authority to UCI, provided that any such rebudgeting is approved at the
appropriate level within UCI, that the delegated rebudgeting authority is
not restricted in such a way as to prohibit the direct charging of
administrative or clerical salaries, and that the project activities that
satisfy the definition of Major Project are documented in the
administering unit’s award file; or
(6) The award received by UCI was made in response to a modular grant
application, provided that the award terms do not prohibit the direct
charging of administrative or clerical salaries and that the project
activities that satisfy the definition of Major Project are documented in
the administering unit’s award file.
Page 2 of 17
February 1998
GUIDELINES
FOR
DIRECT CHARGING SPONSORED PROJECTS
UNIVERSITY OF CALIFORNIA, IRVINE
Expense
Category
Advertising
Description of Typical Expenses
Treatment*
Promoting University activities, e.g., instruction and research, by using coffee mugs, water
bottles, pen and pencils, newspaper, radio, and internet advertisements.
Not Chargeable
Unallowable
A-21
Reference
J.1
Advertising for the recruitment of sponsored project personnel, procurement of goods and
services, or other specific purposes as required by the terms of the sponsored agreement.
(See Recruiting)
Direct
Alcoholic Beverages
Alcoholic beverages, even in connection with allowable university hosting costs.
Not Chargeable
Unallowable
J.3
Alumni Activities
All departmental costs (salaries, publications, operating costs) in support of alumni
activities.
Not Chargeable
Unallowable
J.4
Animals/Animal Care
Veterinarian expenses, animal food, cleaning, cages, etc.
Direct
F.6.b.(1)
Commencement and
Convocation
For F&A cost purposes only.
Instruction F&A cost rate).
Not Chargeable
Unallowable
J.8
(As the student services administration portion of the
Page 3 of 17
February 1998
GUIDELINES
FOR
DIRECT CHARGING SPONSORED PROJECTS
UNIVERSITY OF CALIFORNIA, IRVINE
Expense
Category
Computer
Supplies
Description of Typical Expenses
Cables, cords, paper, disks, toner, hardware, monitors, printers & CPUs.
Treatment*
A-21
Reference
See Supplies &
Materials Category
J.31
Hardware
CPUs, monitors and printers. [for clarification of equipment threshold, see Increase in
Inventorial Equipment Threshold located at snap.uci.edu]
See Equipment
Category
J.18
Software
General purpose software such as word processing and special statistical applications.
See Supplies &
Materials Category
J.31
Internet Access
Cost of access to the Internet (on-campus and off-campus).
Not Chargeable
Computing Time
CPU time, access fees, storage fees, etc. for research activities
Direct
F.6.b.(1)
Consultants
Expertise of a well-defined nature for a fixed period of time.
Direct
J.37
Contingency Provisions
Contingency reserves made for events that cannot be foretold with certainty as to time,
intensity, or with an assurance of their happening.
Not Chargeable
Unallowable
J.11
Donations and
Contributions to the
University
The valued of donated services and property.
Not Chargeable,
but can be used
for Cost Sharing
and Matching
Requirements
J.15
Page 4 of 17
February 1998
GUIDELINES
FOR
DIRECT CHARGING SPONSORED PROJECTS
UNIVERSITY OF CALIFORNIA, IRVINE
Expense
Category
Description of Typical Expenses
Treatment*
A-21
Reference
Donations (Charitable)
and other contributions
made by the University
Services, property, or funds donated by UCI to other organizations.
Not Chargeable
Unallowable
J.15
Entertainment
Expenditures for recreation, amusement, social activities and any expenditures directly
associated with the activity (i.e., tickets to shows or sports events, meals, lodging, rentals,
transportation, and gratuities).
Not Chargeable
Unallowable
J.17
Equipment
“Equipment” means an article of nonexpendable, tangible personal property having a
useful life of more than one year and an acquisition cost which equals or exceeds the lesser
of the capitalization level established by the organization for financial statement purposes.
Beginning July 1, 2006, F&A will be applied to all expenditures for items below $5,000.
[For clarification of equipment threshold, see Increase in Inventorial Equipment Threshold
located at snap.uci.edu]
“Capital expenditures” means the cost of the asset including the cost to put it in place.
Capital expenditures for general purpose equipment, buildings, and land are unallowable as
direct charges, except where approved in advance by the sponsoring agency, Expanded
Authorities, and/or Federal Demonstration Partnership.
Not Chargeable
except with
advance agency
approval
J.18
“Special purpose equipment” means equipment, that can be used only for research,
medical, scientific, or other technical activities. Examples of special purpose equipment
include scintillation counters, centrifuges, spectrographs, and microscopes.
Direct
with agency
approval
“General purpose equipment” means equipment, the use of which is not limited only to
research, medical, scientific or other technical activities. Examples of general purpose
equipment include office equipment and furnishings, air conditioning equipment,
reproduction and printing equipment, motor vehicles, and automatic data processing
equipment.
Not Chargeable
except with
advance approval
from the awarding
agency
Page 5 of 17
February 1998
J.18
GUIDELINES
FOR
DIRECT CHARGING SPONSORED PROJECTS
UNIVERSITY OF CALIFORNIA, IRVINE
Expense
Category
A-21
Reference
Description of Typical Expenses
Treatment*
Fines and Penalties
Payments made because of violations of or failure to comply with federal, state, local, or
foreign laws and regulations.
Not Chargeable
Unallowable
J.19
Fund Raising
Costs of fund raising, including gift solicitation or capital campaigns, for the sole purpose
of raising capital or obtaining contributions.
Not Chargeable
Unallowable
J.20
Goods or Services for
Personal Use
Costs of goods or services for personal use.
Not Chargeable
Unallowable
J.22
Honoraria
An honorarium is a payment for which the primary intent is to confer distinction on, or to
symbolize respect, esteem, or admiration for the recipient. (Payment for services rendered
is an allowable cost but should not be referred to as an honorarium).
Not Chargeable
Unallowable
Human Subject
Compensation
Monetary or other items provided to an individual as compensation for their time
commitment and/or inconvenience assumed by participating in a research project as a
research subject. The fees must be approved by the Institutional Review Board (IRB) in
advance as to type and amount of compensation and described in the informed consent
form. Subject fees may take many forms, including cash, check, money orders, coupons,
gift cards, etc. Subject fees are separate from the reimbursed costs for expenses such as
parking, mileage, hotel, airfare, etc.; however, both must be approved by the IRB. Any
additional costs associated with the provision of subject compensation (e.g., money order
fee, checking account or ATM fee) may be considered part of subject compensation fees.
Direct
Page 6 of 17
February 1998
J.31
GUIDELINES
FOR
DIRECT CHARGING SPONSORED PROJECTS
UNIVERSITY OF CALIFORNIA, IRVINE
Expense
Category
IRB Application
Preparation
Lease Agreements
Description of Typical Expenses
Treatment*
Departmental or investigator support costs incurred to prepare and submit an Institutional
Review Board application while a new proposal is pending or otherwise unfunded. These
costs include salaries, supplies, copying, postage and delivery fees.
Not Chargeable
F&A
Costs related to the preparation and submission of IRB applications and other documents
necessary to maintain approval of human subjects research described in a funded project.
Theses duties are typically performed by research project staff.
Direct
The cost of leased space (and associated utilities and maintenance charges) used by a
sponsored project. A variety of room types could be used to support the sponsored project,
such as: a laboratory, a storage space, a workroom, an office.
Direct
The cost of leased space (and associated utilities and maintenance charges) used for
departmental administration purposes.
Not Chargeable
F&A
Legal
Legal and other costs associated with certain court actions and administrative proceedings.
Not Chargeable
Unallowable
Lobbying
Lobbying includes: 1) Attempts to influence the outcome of federal, state or local elections,
referendums, initiatives or similar procedures, and 2) Specifically requested technical and
factual presentations to legislative bodies on topics directly related to sponsored
agreements and activities authorized by statute.
Not Chargeable
Unallowable
A-21
Reference
Page 7 of 17
February 1998
J.43
J.13
J.28
GUIDELINES
FOR
DIRECT CHARGING SPONSORED PROJECTS
UNIVERSITY OF CALIFORNIA, IRVINE
Expense
Category
Memberships
(Subscriptions and
Professional Activities)
Motor Vehicles
Description of Typical Expenses
Treatment*
Costs of membership in civic, community organizations, country club, or social/dining
clubs.
Not Chargeable
Unallowable
Institutional, individual memberships and subscriptions to technical and professional
organizations.
Not Chargeable
F&A
Expenses for individual membership, subscriptions to business, professional, and technical
periodicals are only chargeable to federal sponsored projects in exceptional circumstances.
The expenses must be necessary to carry out the scope of the project and can be identified,
with a high degree of accuracy, specifically with a particular sponsored project.
Direct
Institutional furnished automobiles (Vehicles for personal use)
Fleet service costs, renting a car.
Network
A-21
Reference
Not Chargeable
Unallowable
J.33
J.10.g
Direct
Network infrastructure costs relating to equipment and wiring generally “behind the wall,”
like routers, wiring, conduit, etc. This would include Ethernet and LAN charges.
Not Chargeable
F&A
Network costs that are related to a project’s network and are from “the wall” to the
workstation. Project specific upgrades beyond the normal services, but located “behind the
wall”.
Direct
Page 8 of 17
February 1998
J.9
GUIDELINES
FOR
DIRECT CHARGING SPONSORED PROJECTS
UNIVERSITY OF CALIFORNIA, IRVINE
Expense
Category
Description of Typical Expenses
Overruns on Sponsored
Agreements
(Overdrafts)
Expenditures that exceed the project budget.
Participant Support
Stipends
Tuition
Materials & Supplies
Travel/subsistence
Health insurance (foreign nationals)
Postage: Mail Stop
Postage
Not Chargeable
Unallowable
Direct
Campus mail services provided on a recharge basis.
Direct
Postage for routine mailings, including office correspondence and delivery of proposals.
Not Chargeable
F&A
General administrative programming.
J.29
NSF Policy and
Guidelines
Not Chargeable
F&A
Mail stop charges for mass mailing such as survey collection, patient follow-up letters.
Postage for mailing of scientific material related to research projects such as shipping blood
supplies or lab supplies; survey collection; patient follow-up letters.
Programming
Treatment*
A-21
Reference
F.6.b.(3)
Direct
Not Chargeable
F&A
Programming that is necessary to carry out the scope of the project and can be identified
specifically with a particular sponsored project with a high degree of accuracy.
F.6.b.(3)
Direct
Page 9 of 17
February 1998
J.47
GUIDELINES
FOR
DIRECT CHARGING SPONSORED PROJECTS
UNIVERSITY OF CALIFORNIA, IRVINE
Expense
Category
A-21
Reference
Description of Typical Expenses
Treatment*
Promoting University activities, e.g., instruction and research, by using coffee mugs, water
bottles, pen and pencils, newspaper, radio, and internet advertisements.
Not Chargeable
Unallowable
Advertising for the recruitment of personnel, procurement of goods and services, or other
specific purposes as required by the terms of the sponsored agreement.
Direct
Proposal Preparation
Cost incurred for preparing and submitting a proposal, such as salaries, supplies, copying,
postage. Proposal costs are the costs of preparing bids or proposals on potential
government and non-government sponsored projects, including the development of
engineering data and cost data necessary to support the institution’s bids or proposals.
Not Chargeable
F&A
J.38
Publication
Costs of communicating with the public and press pertaining to specific activities or
accomplishments which result from performance of sponsored agreements, regardless of
the media used.
Not Chargeable
Unallowable
J.1.d.(2)
Promotional Items
Publication costs for dissemination of research results.
Public Relations
The term public relations includes community relations and means those activities
dedicated to maintaining the image of the institution, or maintaining or promoting
understanding and favorable relations with the community or public at large or any
segment of the public.
Public relations expenses only as specifically required by the terms of the agreement.
Costs of communicating with the public and press pertaining to specific activities or
accomplishments which result from the performance of sponsored agreements.
J.1
Direct
Not Chargeable
Unallowable
Direct
Not Chargeable
F&A
Page 10 of 17
February 1998
J.1b
GUIDELINES
FOR
DIRECT CHARGING SPONSORED PROJECTS
UNIVERSITY OF CALIFORNIA, IRVINE
Expense
Category
Recruiting
Repairs & Maintenance
Description of Typical Expenses
Treatment*
In publications, costs of “help wanted” advertising that includes extravagant advertising
(large in size and color), includes advertising material for other than recruitment purposes.
Not Chargeable
Unallowable
Search expenses, including travel costs of employees while engaged in recruiting
personnel, travel costs of applicants for interviews for prospective employment, and
relocation costs incurred incident to recruitment of new employees. Costs of meals which
are a part of the recruitment process.
Direct
Core service for state supported space in UCI buildings (non-leased).
Not Chargeable
F&A
Special services directly related to project performance for state supported space in UCI
buildings (non-leased).
Direct
Service of equipment installed as part of state funded capital projects or an integral part of
a central building service.
Not Chargeable
F&A
Service of equipment bought on a grant or contract.
Normal repair and maintenance of general purpose equipment.
Costs incurred for necessary maintenance, repair or upkeep of property used in the
performance of a sponsored project which neither adds to the permanent value of the
property nor appreciably prolongs its intended life but keeps it in an efficient operating
condition.
A-21
Reference
Direct
Not Chargeable
F&A
Direct
Page 11 of 17
February 1998
J.42
J.30
GUIDELINES
FOR
DIRECT CHARGING SPONSORED PROJECTS
UNIVERSITY OF CALIFORNIA, IRVINE
Expense
Category
A-21
Reference
Description of Typical Expenses
Treatment*
Copying items related to routine departmental administrative activities such as ledgers,
invoices, project proposals, progress reports to agencies, purchase orders, etc.
Not Chargeable
F&A
Copying items directly identified with project performance such as reproduction of
publications, manuscripts or survey instruments, scientific data, human subjects, protocols,
etc.
Direct
Reconversion
Costs incurred in the restoration or rehabilitation of the institution’s facilities to
approximately the same condition existing immediately prior to commencement of a
sponsored agreement, fair wear and tear excepted.
Direct
J.41
Renovation and
Alteration
Costs incurred for ordinary or normal rearrangement and alteration.
Non Chargeable
F&A
J.40
Reproduction
Special Arrangement and alteration costs incurred specifically for the project, when such
work has been approved in advance by the sponsoring agency. New utility distribution
within the laboratory.
Direct
Scholarships and
Student Aid
Costs of scholarships fellowships, and other programs of student aid in training grants, such
as T32 and F32.
Direct
Subaward
Subaward established for transference of a portion of the program work to another entity.
Direct
Subscriptions
If the periodical or book is not available via internet or the library, and the content is
specifically and solely related to the project.
Direct
Page 12 of 17
February 1998
J.39
J.45
J.33
GUIDELINES
FOR
DIRECT CHARGING SPONSORED PROJECTS
UNIVERSITY OF CALIFORNIA, IRVINE
Expense
Category
Supplies and Materials
Telephone
Description of Typical Expenses
Treatment*
General administrative supplies, such as computer, computer supplies including computer
diskettes, general purpose software, printer paper, and toner cartridges, pencils, pens,
paper, paper clips, etc.
Not Chargeable
F&A
Supplies such as chemicals, radioisotopes, plastic tubes, columns, vials, animals, and
office-type supplies such as lab notebooks, computer, special statistical applications,
computer supplies including computer diskettes, printer paper, and toner cartridges stored
in the lab, or in space under the control of the lab, and used only in the laboratory or field
for the technical work. The cost is necessary to carry out the scope of the project and can
be identified specifically with a particular sponsored project, an instructional activity, or
any other institutional activity, or that can be directly assigned to such activities relatively
easily with a high degree of accuracy.
Direct
Basic telephone line, equipment, installation and local telephone services.
A-21
Reference
Not Chargeable
F&A
J.31
F.6.b.(3)
F.6.b.(1)
Telephone toll charges.
Direct
Cellular phones required for field sites and approved by the sponsor.
Direct
Off-Campus leased space or a special circumstance approved by the sponsor.
Direct
Page 13 of 17
February 1998
GUIDELINES
FOR
DIRECT CHARGING SPONSORED PROJECTS
UNIVERSITY OF CALIFORNIA, IRVINE
Expense
Category
Travel
Utility
Description of Typical Expenses
Treatment*
Airfare costs in excess of the lowest available commercial discount airfare, Federal
Government contract airfare, or customary standard (coach or equivalent) airfare.
Not Chargeable
Unallowable
Travel to conferences, symposiums, colloquiums, including registration fees; meetings at
awarding agencies; or travel as needed for performance of project and approved by the
Sponsor, including dissemination of projects results.
Direct
Normal utility costs.
A-21
Reference
J.53
Not Chargeable
F&A
See Lease Category
Waste Disposal
(hazardous)
Hazardous waste disposal, waste spills, issuing of badges, specialized environmental health
and safety training.
Direct
Page 14 of 17
February 1998
J.47
GUIDELINES
FOR
DIRECT CHARGING SPONSORED PROJECTS
UNIVERSITY OF CALIFORNIA, IRVINE
*Treatment. The “Treatment” column contains terms with the following explanations:
Direct. Direct means that the described expenses can be charged to federal sponsored projects. Direct expenses are necessary to carry out the
scope of the project, and can be identified specifically with a particular sponsored project with a high degree of accuracy.
These items of expense are often referred to as direct expenses, direct costs or direct charges.
Not Chargeable. These expenses cannot be charged to federal sponsored projects. Other funding sources must be utilized.
F&A. F&A stands for Facilities and Administrative, and these expenses cannot be directly charged to federal sponsored projects. F&A costs
are those costs that are incurred for common or joint objectives and therefore cannot be identified readily and specifically with
a particular sponsored project.
Unallowable. The federal government has identified these items as expenses they will not reimburse. Accordingly, they are not chargeable to
federal sponsored projects.
Cost Sharing. Expenses directly benefiting a sponsored project, but per agreement with the federal government, the university is required to
provide funding.
** Special Purpose or Circumstance
Justifying the Treatment of F&A (Facilities and Administrative)Costs as Direct Costs
When a special circumstance exists, it may be acceptable to propose and charge an F&A cost as a direct cost. The special circumstance that
necessitates direct charging costs that are normally treated as F&A costs should be explicitly described and substantiated in the budget justification
section of the proposal. Such costs may be directly charged only if they meet the following requirements:
(1) The proposal budget includes the costs and the special circumstances necessitating the direct charging of such costs are justified in the proposal.
(2) The project has a special need for the item or service that is beyond the level of services normally provided.
(3) The costs can be specifically identified with the work conducted under the project.
Page 15 of 17
February 1998
GUIDELINES
FOR
DIRECT CHARGING SPONSORED PROJECTS
UNIVERSITY OF CALIFORNIA, IRVINE
Examples of Special Purpose or Circumstance Justifying Direct Charges - Following are examples of federal Major Projects that illustrate
circumstances where direct charging of administrative and clerical salaries may be appropriate.
1. Projects that are geographically inaccessible to normal departmental administrative services such as research vessels, radio astronomy projects, and other
research field sites that are remote from campus (e.g., field projects).
2. Projects that require making travel and meeting arrangements for large numbers of participants, such as conferences and seminars.
3. Large, complex programs, such as General Clinical Research Centers, Primate Centers, Program Projects, environmental research centers, engineering
research centers, and other grants and contracts that entail assembling and managing teams of investigators from a number of institutions.
4. Projects which involve extensive data accumulation, analysis and entry, surveying, tabulation, cataloging, searching literature, and reporting (such as
epidemiological studies, clinical trials, and retrospective clinical records studies).
5. Projects whose principal focus is the preparation and production of manuals and large reports, books, or monographs (excluding routine progress and
technical reports).
6. Individual projects requiring project-specified database management; individualized graphics or manuscript preparation; human or animal protocols; and
multiple project- related investigator coordination and communications.
7. Since training grants are for a different purpose (training) than a traditional research project, these project budgets may include costs that are normally
treated as F&A (indirect) costs. Training grants permit a budget for an “institutional allowance” which authorizes direct charging of appropriate expenses
normally treated as facilities and administrative (indirect) costs if they are reasonable, specifically identified with the project, and budgeted in the award.
The following examples are illustrative of circumstances where direct charging of administrative or clerical salaries to non-federal projects may be appropriate
if the costs are budgeted and approved by the awarding agency:
1. Private sponsored projects. Industrial/Commercial: Projects performed for these organizations are proposed and awarded to be performed, at least in part,
for the benefit of the industrial/commercial sponsor and the University. Total costs of these are the concern of the sponsor, not whether the costs are direct
or facilities and administrative (indirect).
Page 16 of 17
February 1998
GUIDELINES
FOR
DIRECT CHARGING SPONSORED PROJECTS
UNIVERSITY OF CALIFORNIA, IRVINE
2. Foundations and not-for-profit agencies or associations: Generally the purpose of private foundation funding is to supplement federal research support.
Typically, foundations do not support the facilities and administrative (indirect) activities of the research project as indicated by their practice of funding
facilities and administrative (indirect) costs at a rate less than the institution’s full indirect cost rate.
3. State sponsored agreements that have defined the types of costs that are direct or facilities and administrative (indirect) would constitute a different
circumstance than costs incurred under federal agreements. UCI must comply with State agency regulations and statutory requirements. Consequently,
costs normally treated as facilities and administrative (indirect) costs could be treated as direct if they are reasonable, specifically identified with the
sponsored agreement, and included in the award budget.
Page 17 of 17
February 1998